Real Estate Information Archive

The June housing numbers - taken from the Greater Augusta Association of Realtors MLS reports - show the Augusta area is truly a "Tale of Two Cities."  Perhaps a more accurate title would be a "Tale of Two Counties."

Columbia County - on the one hand - showed a flat sales month when compared to June of 2008.  Residential sales (single family, townhomes, condos, manufactured homes) for June '09 in Columbia County came in at 235 closed transactions - compared to 237 for the same month in 2008.

Richmond County numbers plummeted over 2008 - a strong sign that the Augusta Housing market - as a whole - is far from recovery.  June 2009 sales in Richmond County totalled 156 properties.  A stark dropoff from an already-horrible 2008 figure of 205.

When taken in context - it seems Columbia County's flat sales number is actually an improvement.   It marked the first time monthly sales did not reflect at least a double-digit drop over the same month of the previous year since 2006.  A trend?  Too early to tell.  If July and August numbers show continuing stability, it may mean the Columbia County macro-level of the CSRA market has hit bottom.  I do not sense this to be the case in the rest of the area.

Richmond County - home to the vast majority of foreclosures, distressed, and lower-income properties in the CSRA - is still suffering the recession impact and it may get worse.  There are still close to two million Adjustable Rate Mortgage and other toxic mortgage products scheduled to recast over the next few years across the country.   This means an almost certain increase in foreclosed homes in the Augusta area.  This will not be limited to the Richmond County macro - but it is in that sector of our market that many believe the predatory lenders took the most advantage of home buyers over the last several years.

The bottom line is all Augustans are still weathering the Housing Crisis storm, and it will probably be well into 2010 before any hint of a housing recovery truly affects the ENTIRE area.

If you feel you are in peril of losing your home to foreclosure - you need to click here to watch a video from the FTC about Foreclosure Rescue Scams.

I look forward to any comments about this post.

For the first time since 1999, May sales figures dropped below April's totals.

May total sales of Residential, Manufactured Homes, Condos, and Residential Attached (Townhomes) decreased over April figures for the first time since 1999.  May's total of 401 sales - although only a slight drop from April's final tally of 405 sales - is still a significant indicator that Augusta's economy is not the rosy picture often referenced by local media reports.

The 401 sales also mark the lowest May sales figure since 1999 (387 sales).

Current market conditions are off 17% on 2008's numbers. 

There are some bright points in the data - we started the first three months of 2009 down 20%, so the summer market is contributing to a slight decrease in the differential - so it sucks less than in March.

Townhome sales also rebounded with the typical spring coming and going of Medical students.  A market sector that had been down 43% over 2008 posted a meager 15% decrease over that year's figures.

Another good sign is an increase of average sales price of over $11,000.   May's average totalled $163,919, compared to April's $152,465.

The percentage of list-to-sale remains above 97%, indicating Buyers are still willing to pay near-list price for properties in our area.

The absorption rate - an indicator of how long it would take to sell all current inventory - rose slightly, to 10.6 months, but still represents a 5.5 month reduction on January's 16.1 month rate.

May sales have an average of 129 Days on the Market (DOM), an increase of 15 DOMs over April.

The bottom line is if you are a Buyer - there are homes to be had at great prices and great terms. 

If you are a Seller - hunker down, price the home right, and ensure IMMACULATE condition.  Offer closing costs up front and a home warranty.  Fix everything that's broken or an eyesore.  Good homes sell in any market, it just may take longer in the current conditions.

I believe the new HUD rules governing the use of the $8,000 Tax Creditwill evolve through June and into the late Summer as a means for First-Time Homebuyers to secure their downpayment.  This is especially important for VA Buyers who may wish to switch to FHA products to avoid a negative equity result from financing the VA funding fee.

1^st Quarter August GA Home Sales Summary

Well, it’s time to take a good hard look at how the 1^st quarter numbers of 2009 stack up, so here goes:

- Overall sales are down 17% on 2008 figures for the first three months of the year.  March sales rebounded to 11% down on March 2008, much better than January (down 24%) and February (16%) – so that 17% figure may go lower as we enter the better home sales months.

-  Expect April figures to decline slightly.  A full week of out-of-town guests for the Masters Golf tournament always puts a damper on the April sales figures – and I expect that trend to continue.  Since 2003, only one year saw an increase in residential says in April over March – 2006.  Every other year in that period has shown decreased sales activity for April over March.

- The average sales price for March of 2009 was $157,959 – almost $4,500 higher than the same period last year.

- Richmond and Columbia County continue to pace sales in the CSRA – with the west Augusta and south Augusta regions posting slightly higher totals than the Martinez/Evans/Grovetown (North of I-20) corridor of Columbia County.  Harlem and Appling continue to post weak sales figures – reflecting the smaller population of those areas of the county.

- As of this writing, 30 year conventional mortgage rates in the Augusta area are hovering close to the 4.65% mark, with VA and FHA rates also well below 5% - continuing the historical lows we’ve seen for the last several months.  There will probably never be a time period in my lifetime when homes are this affordable.  

THE BOTTOM LINE:  If you are selling – get your home on the market sooner than you planned.  We continue to weather the mortgage crisis storm and inventory is still high.  This is hand-in-hand with Gary Keller’s Vision Speech from the Keller Williams Family Reunion.  I’m paraphrasing, but he said in February that “the next six months will probably be the worst economic times you will ever see in your lifetime.”   With over 400,000 ARMs adjusting in 2009, there will continue to be foreclosures at record levels.  Expect things to bottom out by August, with the housing market posting a mild turnaround by the early 2010 months.   

If you’re buying, you probably won’t see this level of choice again for quite some time, and the concessions offered by Sellers in this market are phenomenal.   Interest rates are still historically low – how long that will last is anyone’s guess.   I certainly see rates continuing below 6% through at least November if not longer.

At the end of the day, good homes sell in any market.  If you are a First Time Homebuyer or have not purchased or a primary residence in the last three years, this is a perfect time for you - the $8,000 Tax Credit is an outstanding incentive.